:00:22. > :00:28.Those are the latest headlines. The After marathon overnight talks, EU
:00:28. > :00:31.finance chiefs agree on rules for future bank bailout. They insure
:00:31. > :00:35.that it is investors and non- taxpayers who bear the brunt.
:00:35. > :00:45.Give us more immigrants! US farmers pin their hopes on reforms on the
:00:45. > :00:49.
:00:49. > :00:55.way through the Senate to give more Welcome up to World Business Report.
:00:55. > :00:57.Also in the programme: Loyal to Gillard it - Wayne Swan quits as
:00:57. > :01:01.Australia's finance minister and deputy Prime Minister. We assess
:01:01. > :01:06.the outlook for the Australian economy.
:01:06. > :01:09.First - when a bank goes bust who should pay? That is the big
:01:09. > :01:13.question facing EU finance ministers and after marathon
:01:13. > :01:17.overnight negotiations, a deal was struck in the early hours or that
:01:17. > :01:21.the morning. EU leaders say that they have agreed on rules for
:01:21. > :01:27.future bank bail-outs in order to avoid the massive cost to taxpayers
:01:27. > :01:31.that was seen following the 2008 crisis. According to news agencies,
:01:31. > :01:35.the deal is expected be signed off at the summit beginning in a few
:01:35. > :01:40.hours. It will form one of the pillars of the planned Europe-wide
:01:40. > :01:45.banking union. What do we know so far? According to a draft proposal,
:01:45. > :01:48.if a bank runs into trouble in future, shareholders and credit
:01:48. > :01:52.tours would be the first to shoulder any losses. If that is not
:01:52. > :01:58.enough to prop up the lender, small companies and savers with deposits
:01:58. > :02:03.of more than 100,000 euros would also take a hit. Only then would
:02:03. > :02:08.many be released from the Europe's $500 billion bailout fund, the
:02:08. > :02:17.European Stability Mechanism. These rules would apply equally to all
:02:17. > :02:22.countries despite requests from Under the planned banking union,
:02:22. > :02:29.the European Central Bank would act as a supervisor and safety net for
:02:29. > :02:32.all EU banks. The problem is on who pays when one fails? France is
:02:32. > :02:36.adamant that governments decide on a case-by-case basis. In Germany,
:02:36. > :02:41.as the biggest contribution to the bailout fund, has been concerned
:02:41. > :02:45.that if the rules are watered down, it will end up footing the bill for
:02:45. > :02:53.other countries. It is determined that private investors must
:02:53. > :02:59.shoulder some of the burden. TRANSLATION: It was long, it was
:02:59. > :03:03.difficult and intensive. This was to be expected. It is clear that in
:03:03. > :03:08.principle, when base get into difficulties in the future, the
:03:08. > :03:12.taxpayer should not be first in line to pay. -- when banks.
:03:12. > :03:16.banking union is seen as a vital seen to rebuilding confidence in
:03:16. > :03:20.the eurozone and encouraging banks to start lending again. It has
:03:20. > :03:24.already been one year in the making. Financial markets now need to see
:03:24. > :03:34.evidence that that EU leaders can make this latest step towards
:03:34. > :03:36.
:03:36. > :03:42.I am joined by Michael Hewson is Senior Market Analyst at CMC
:03:42. > :03:45.Markets. Nice to see you. The Dutch Finance Minister is saying that
:03:45. > :03:49.this marks a big change in the way that banks will be bailed out in
:03:49. > :03:53.the future. What do you make of the deal? I think that if it holds, it
:03:53. > :03:58.is a good deal. One thing we have lacked in this crisis is clarity
:03:58. > :04:02.with respect to how each country's individual banks are bailed out.
:04:02. > :04:07.This must be ratified by each individual government. In their
:04:07. > :04:12.parliament. That does cut across sovereign boundaries. I think also
:04:12. > :04:18.there is a concern or there was a concern that the Cyprus model could
:04:18. > :04:21.actually caused bank runs in vulnerable countries. There is a
:04:21. > :04:26.problem there which may need to be addressed, going forward. One of
:04:26. > :04:30.the key issues is that the taxpayer is last to shoulder losses when a
:04:31. > :04:36.bank needs to be bailed out in the future. That was always a political
:04:36. > :04:41.hot potato, wasn't it? They had to do something to arrange a system
:04:41. > :04:45.that made the taxpayer did not bear the brunt. Even more so in the
:04:45. > :04:50.light of the tapes which came out earlier this week. It is a
:04:50. > :04:56.heartland issue. There was little appetite, especially with Germany,
:04:56. > :04:59.for further taxpayer bail-outs for errant banks. Thank you for your
:04:59. > :05:04.analysis. Michael will return because he will talk through the
:05:04. > :05:12.newspaper stories of which there are a lot of money muses. Moving on
:05:12. > :05:16.to other stories. There is a debate in the US over a
:05:16. > :05:19.reform bill in the US Senate. It will be millions of illegal
:05:19. > :05:22.immigrants the right to earn citizenship. Despite high
:05:22. > :05:27.unemployment in the US, the agricultural sector continues to
:05:27. > :05:30.grapple with a shortage of labour. Many farmers pin their hopes on an
:05:30. > :05:34.Immigration Reform Bill working its way through the Senate to help
:05:34. > :05:38.solve the problem. We report from North Carolina are, the number one
:05:38. > :05:44.state in America to issue temporary visas to foreign farm workers --
:05:44. > :05:48.North Carolina. From Mexico to North Carolina. Two
:05:48. > :05:52.chartered buses filled with Mexicans ball into the parking lot
:05:52. > :05:58.of the North Carolina are growers Association. All of them are here
:05:58. > :06:02.legally. -- North Carolina Growers Association. There are about 80
:06:02. > :06:10.people from Mexico here, all waiting to receive their permits.
:06:10. > :06:16.Next week, four times as many are expected. The North Carolina issues
:06:16. > :06:20.visas which allows foreign migrant workers to farm American soil. For
:06:20. > :06:27.17 years, this man has been coming to North Carolina. He can earn more
:06:27. > :06:34.money here for his family. He told me that you can have a better life,
:06:34. > :06:38.that a car, a better television. You can live better. Back inside,
:06:38. > :06:43.workers wait anxiously for their names to be called. This is where
:06:43. > :06:48.we process the workers when they arrive. We complete the online form.
:06:48. > :06:56.It is courtesy of some been known as an age to a programme. Most
:06:56. > :07:01.farmers do not have time for all the paperwork. -- H2A. It is a
:07:01. > :07:06.minefield. There are many regulations. The penalties are very
:07:06. > :07:09.severe forepaw paperwork. You would like to see that changed with the
:07:09. > :07:16.legislation? We would. We would like to see a workable guest worker
:07:16. > :07:22.programme. The journey ends here for this guest worker. At the farm.
:07:22. > :07:30.Over the coming months, this will be home. You need to get all of
:07:30. > :07:33.these plants into the field? Right. It will be you and how many guys?
:07:33. > :07:41.Me and around eight guys. Without the help of legal migrant workers,
:07:41. > :07:45.he would not be able to plant of the week -- plant the wheat,
:07:45. > :07:50.tobacco and soybeans that he has planted for a generation. There is
:07:50. > :07:55.a lot of expense. To get these workers but like I said, if we
:07:55. > :07:59.didn't have them, I would not be able to survive. Lawmakers are
:07:59. > :08:04.considering increasing the number of illegal migrant workers as part
:08:04. > :08:14.of the larger Immigration Reform Bill. Something like farmers --
:08:14. > :08:17.
:08:17. > :08:21.something that farmers like this As you have been hearing, a bitter
:08:21. > :08:26.political battle has led to a change in leadership in Australia.
:08:26. > :08:32.What will this mean for the economy? We speak to our Asia
:08:32. > :08:37.business hub. Nice to see you. Musical chairs in Australia?
:08:37. > :08:43.indeed. Right now you have Mr Kevin Rudd facing key challenges to jump-
:08:43. > :08:47.start a weakening economy which expanded by just 2.5% in the first
:08:47. > :08:52.quarter of this year compared to last year's levels. Business groups
:08:52. > :08:56.and investors and economists are on the case, asking the new Prime
:08:56. > :09:01.Minister to bring forward the schedule SEP- 14 election to boost
:09:01. > :09:04.business and consumer sentiment. A former diplomat, he pledged to to
:09:04. > :09:09.work closely with business and improve the economy which saw the
:09:09. > :09:18.central bank cut interest rates to a record low. The key challenges it
:09:18. > :09:22.faces include a slowdown in China which is the closest a buyer and
:09:22. > :09:26.also minerals price changing and also an economy which is becoming
:09:26. > :09:31.less dependent on the mineral sector. For now, investors are
:09:31. > :09:38.relieved that the issue circus is over. The Australian dollar is
:09:38. > :09:43.steady. These gains could be short- lived if Mr Kevin Rudd delays his
:09:43. > :09:45.policies and the contented election date. Interesting. Thank you. A
:09:45. > :09:48.looking at the markets, we will see looking at the markets, we will see
:09:48. > :09:55.how these stories are interpreted by investors around the world. Asia
:09:55. > :10:00.has opened a trading. Look at that! A strong day in Japan. Hong Kong is
:10:00. > :10:06.also strong. We have not got the Australian markets that they are
:10:06. > :10:10.riding high. 1.5% higher. The reasons why are interesting. The
:10:10. > :10:16.Federal Reserve could perhaps hold back on tapering stimulus measures
:10:16. > :10:18.for the US public because the news about growth in the US was a slower